Lord Heseltine has refused to reiterate a pledge that the government will meet the clean-up costs at the Redcar SSI steelworks site .

In February, Lord Heseltine - appointed to lead the regeneration of the site - said the cost of cleaning it up would be met by central government.

During a visit to the area he said: “The money to clean up the site will be what it costs. No-one knows what the condition of the site is and although there have been estimates, they are estimates based on guess work.

“So it is much better to make it clear, central government will pay the clean-up costs and underwrite them whatever the bill comes to.”

But in an interview to be broadcast tonight on BBC1’s Inside Out programme, the former deputy prime minister now says the Government can’t give a “blank undertaking” to meet clean-up costs.

The clean-up of the site is being delayed due to a dispute between the administrator and Thai banks. However, it is estimated it could cost at least £1bn.

Lord Hesletine said: “You are left with this uncomfortable question. What does the clean-up mean and until you have found out what it means, and how long it takes, and the composition of it, you can’t be precise. ….There will always be questions about what next.”

Lord Heseltine in Middlesbrough speaking about his independent report on the Tees Valley

When asked if he had been wrong to make the pledge in February, he replied: “No, no. I think in the context that I was talking it was perfectly reasonable because the government had produced £40m, it’s a lot of money you know.

Lord Heseltine added: “We know that £40m is on the table and a lot of work is being done then to ask a lot more future questions.”

The closure of the plant last year ended a century of steelmaking in the region and sent shockwaves through the fragile local economy.

It also left behind an abandoned industrial site covering hundreds of acres containing toxic chemicals and metals such as arsenic and chromium, cadmium, zinc, nickel and boron. Experts say that if the site is left to decay, there could even be a threat to the health of the local population.

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A Government spokesman would only confirm to the BBC there would only be money available for site maintenance and a contamination survey.

Anna Soubry MP, who was Business Minister when the steelworks closed and made several visits to Teesside, said: “He (Lord Heseltine) made the pledge so he’s got to deliver on it. I’m more than happy to speak to him about it. Someone needs to take responsibility.

“It’s really important that we don’t allow it to sit there for decades, that’s wrong.”